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Haiti is extremely vulnerable to natural disasters with more than 90 percent of the population at risk. Hurricane Matthew battered the south of Haiti on October 4, 2016, which was the most devastating disaster since the 2010 earthquake.

Overview

Haiti is the poorest country in the Western Hemisphere, with Gross Domestic Product (GDP) per capita of $870 in 2018 and a Human Development Index ranking of 163 out of 188 countries in 2016. Based on the most recent household survey (2012), over 6 million Haitians live below the poverty line with less than US$2.41 per day, and more than 2.5 million fall below the extreme poverty line (US$1.23 per day).

GDP grew from 1.2% in 2017 to 1.5% in 2018. This weak performance in terms of the economic growth rate was accompanied by a deepening of the budget deficit, which surged from 1.9% of GDP in 2017 to 4.3% in 2018. Increasingly, this deficit is being financed by the Central Bank. As a result, the national currency (the gourde) continues to depreciate, fueling double-digit inflation (around 15%) and further penalizing the poorest households. These macroeconomic challenges, compounded by weak tax revenues, have prevented the Government from increasing budgetary allocations for social issues.

Recently, Haiti has had to contend with several periods of instability caused by demonstrations, strikes and civil unrest at the national level. On March 18, 2019, the Chamber of Deputies passed a vote of no-confidence in Prime Minister Jean Henry Ceant, six months after he assumed office.

Haiti is also highly vulnerable to natural disasters, mainly hurricanes, floods and earthquakes. More than 93% of the country and more than 96% of the population are exposed to these natural disasters. To address these climatic hazards, the country has continued to build resilience with the support of its partners, including the World Bank.

Recovery efforts continue more than two years after Hurricane Matthew hit the country in 2016, causing loss and damage valued at 32% of 2015 GDP. Initial assessments show that the Government has incorporated the lessons learned in the aftermath of Hurricane Matthew into their disaster risk management plans.

Last Updated: Apr 05, 2019

The World Bank Group Country Partnership Framework for Haiti was validated by the Board of Directors in September 2015 and revised slightly in 2018. It is designed to support the country’s efforts to provide economic opportunities for all its people and to combat poverty. The Framework seeks to strengthen institutions, build government capacity, and enhance the management of public finances. It is based on three priority pillars and one cross-cutting pillar on governance:

Promote inclusive growth by creating greater economic opportunities, particularly outside of Port-au-Prince, by strengthening access to energy, developing renewable energy, facilitating access to financing, and promoting the competitiveness and productivity of the private sector through the development of public and private energy infrastructure.

Strengthen human capital and access to services, by improving primary education and maternal and child healthcare, while extending access to water and sanitation in the communities most affected by cholera, and implementing preventative healthcare and treatment measures.

Improve capacity to adapt to climate shocks, by strengthening capacity to respond to disasters and protecting a greater number of Haitians through investments in mechanisms to combat flooding as well as in other climate-resilient infrastructure projects, including drainage systems, reinforced bridges and all-weather roads.

Strengthen governance to improve State effectiveness, by investing in mechanisms to promote transparency and accountability, including accountability within the framework of public financial management; strengthen institutions and government capacity to generate key data and adopt policies based on reliable data; and, finally, to enhance government capacity to finance the provision of basic services.

The World Bank's portfolio in Haiti now stands at $750 million and covers 17 active projects. This is complemented by almost $ 90 million from trust funds that support the implementation of these projects. With over 24% of the allocated resources, the transport sector is the largest recipient of World Bank funding. Around 17% of the investments have been allocated to the social, urban and resilience sectors, 14% to the energy sector, 13% to the health sector, 12% to the agricultural and environmental sector and 12% to the water and sanitation sector. The remaining resources are earmarked for the education, governance, trade and competitiveness sectors.

The envelope allocated to Haiti under the 18th IDA replenishment (IDA-18, which covers the 2017-2020 period) totals $260 million (compared to $120 million under IDA-17). A total of $ 105 million has already been programmed for the 2018 fiscal year and the rest will be scheduled in 2019 and 2020.

Support for the Private Sector

The investment climate in Haiti is beset by many challenges, including a weak real estate sector, inadequate basic infrastructure, and a lack of logistical and financial services and skills.

IDA resources are financing tourism development in the Nord region, the transportation networks and market infrastructure in the Centre and Artibonite regions, the development of regional value chains in each of the 10 departments, and technical assistance for financial inclusion.

In addition to IDA activities, the World Bank Group also supports the Haitian private sector through the International Finance Corporation (IFC).

The IFC strategy in Haiti is twofold:

In the immediate term, create jobs, facilitate access to basic infrastructure and financial services, and create revenue streams by making catalytic investments;

Contribute to the development of a sustainable and inclusive economy through technical assistance programs designed to make the business environment more attractive for investors and for micro, small, and medium enterprises.

The IFC portfolio in Haiti stands at $123.4 million, of which $54.4 million has been mobilized from other partners. IFC supports private sector projects in Haiti in the areas of energy, water, transport, manufacturing, financial markets and the hotel industry. These IFC investments in Haiti have helped to create jobs, expand the supply of drinking water and raise electricity generation capacity in the metropolitan area of Port-au-Prince. By virtue of its advisory service programs for the private sector and the Government, IFC helps to promote access to financing, public-private partnerships, an improved investment climate as well as mechanisms to strengthen the productivity of small and medium enterprises.

Moreover, the World Bank Group’s initiative to establish a leasing market in Haiti is consistent with the aim of maximizing financing for development. By unlocking access to private financing for Haitian businesses, the project has allowed the private sector to play a greater role in driving economic growth. Working closely with the Haitian Government, the World Bank Group has helped to improve the fiscal and regulatory environment, launched a campaign to raise awareness of the benefits of leasing, trained SMEs and other stakeholders, and assisted in establishing Haiti’s first leasing company. Two years after its creation, this company has generated 110 leasing contracts with more than 70 companies, the majority of which are SMEs.

Last Updated: Apr 05, 2019

With the World Bank Group’s support, Haiti has made significant progress in a variety of areas: education, health, water and sanitation, energy, agriculture, regional development, disaster risk management, transport infrastructure, private sector growth, capacity building in statistics, and public financial management.

The following is an overview of the results obtained:

Education

Distribution of textbooks and school kits to more than 23,000 children in the Grand Sud region of Haiti;

Grants for the enrollment of 9,500 students in 43 non-public schools in the departments of Sud, Grand'Anse, Sud-Est, and Nippes;

Over 23,000 students in public basic schools receive hot meals and snacks served in schools in the departments of Sud, Grand'Anse, Sud-Est, and Nippes;

Support for 61 public basic schools and 61 community-run public schools in the departments of Sud, Grand'Anse, Sud-Est, and Nippes;

Construction and rehabilitation of 91 schools or semi-permanent structures after Hurricane Matthew in October 2016;

Over 18,000 school kits and items of furniture distributed to schools affected by Hurricane Matthew.

Health

Expansion of vaccination coverage for 50% of children under the age of five, living in the Nord-Est, Centre, Nord-Ouest, and Sud departments;

Financing of all routine vaccines at the national level for the years 2016 and 2017 and the special diphtheria vaccination campaign for the years 2017 and 2018;

Around 40% of the women living in the Nord-Est, Centre, Nord-Ouest, and Sud departments have benefited from at least four prenatal care visits;

Training in cholera prevention for almost 4 million people and 6,000 health and hygiene officers.

Water and Sanitation

Increased access to drinking water for more than 314,000 people through the construction, rehabilitation, and extension of drinking water supply systems;

Emergency response in six municipalities to prevent the resurgence of waterborne diseases, including cholera;

Rehabilitation of sanitation and supply facilities in more than 60 schools and rehabilitation of around 30 markets;

Support to the Direction Nationale de l’Eau Potable et de l’Assainissement (National Drinking Water and Sanitation Directorate DINEPA) in the development of a national strategy to manage drinking water supply and sanitation services.

Energy

Expanded access to electricity for 410,000 people, through the rehabilitation of 4 distribution networks in Port-au-Prince, and the restoration of the electrical infrastructure in the towns of Cayes and Jeremie and the hydroelectric power plant in Drouet (Artibonite);

Financing and distribution of quality inputs to 9,300 farmers, 45% of whom are women.

Regional Development

Nearly 35,000 inhabitants of the Nord region benefit from the Heritage Preservation and Tourism Sector Support project through improved infrastructure, greater economic opportunities and support for the organization of cultural events;

Ongoing rehabilitation of the historic National Park, which includes the Henri Citadel, the Sans Souci Palace, the Sans Souci Chapel, and the Ramiers buildings;

Stabilization of the Boucle Center Artibonite (BCA) road network’s strategic routes through rehabilitation and protection works to ensure that 10,000 more people have access to agricultural production areas and markets in all kinds of weather.

Disaster Risk Management

A more in-depth analysis of natural hazards and implementation of a system to ensure the more efficient management of public resources in post-disaster situations, through data collection and the publication of geospatial maps;

Support to more than 140 Municipal Protection Committees to establish and build their capacity for planning and managing emergency situations;

Transport

Rehabilitation of 8 kms of road connecting the historic city center of Cap-Haïtien and Labadie;

Construction of the Ladigue bridge after Hurricane Matthew, reconnecting over 2 million Haitians in the departments of Nippes, Sud, and Grand'Anse;

Rehabilitation of the road connecting Port-au-Prince to Jacmel, allowing half a million Haitians living in the south-east of the country to remain connected with the capital;

Stabilization of the Marigot-Jacmel and Port-Salut-Les Anglais road network;

Reconstruction of the Chalon, Dolin, Fauché, La Thème and Boucan Carré bridges and rehabilitation of 100 small bridges and culverts;

Protection and repair of more than 20 major engineering structures.

Support to Governance

Provide the Government with a solid analytical basis to support the development of national policies through in-depth diagnostic studies;

Strengthen the technical and institutional capacities of ministries and government institutions.